The Great Recession?

We are hearing that the economic crisis we are now experiencing is unprecedented.

No.

What we are experiencing is classical economic crisis, easily predictable, entirely preventable.

If we do not take preventive measures that treat the causes and not the effects, we are looking at a Great Recession, not a depression.

While The Great Depression brought the value, the legitimacy, of capitalism into questionable verification, the organizational means of consolidated capital and markets to the ends of consolidating wealth, and power, has been maintained as an economic efficiency that just needs technocratic adjustment (adjusting for the externalities, like our current "toxic debt" that needs to be managed into a detriment for The People by "socializing" it).

This is where the "unprecedented" attributes are to be found. The treatments we see being implemented are symptomatic and neo-classical--they are new, reinventions of the problem in the form of new solutions and mired in complexity to "appear" innovative and thus effective.

For example, the Fed's decision to buy commercial paper is unprecedented, but it does not solve the problem. Rather, it makes the problem--leveraging financials (clogging the credit market) possible by indirectly buying the bad debt it produces and replacing the loss (the consolidated gain receiving the lowest tax burden) with newly printed money (electronic credits). This is called, monetizing the debt, and in the current case is just an extension of the leveraging scheme (the problem). It is a neo-classical economic technology that keeps the organized means of power from being verified as inefficient by indirectly expropriating value from The People and make it look like they are being "rescued." It is, in keeping with the conservative modus operandi, a fraud.

Fraud is a crime against a civil society, and because the problem is a lack of a free and unconsolidated marketplace that sanctions the frauds by denying them access by operation of collective action, collective will, without threatening economic collapse, these criminals must be prosecuted in a political forum of legislative and judicial procedure.

We need a strong executive that will apply corrective policy directly to the causal factors.

Many economists incorrectly evaluate Obama's advocacy of a more progressive tax code as deficit prone. It is not. A more progressive tax code is deficit averse because it taxes the wealth where it is idled (illiquidity) and puts it to work where it is needed, with The People. The result is both economic stimulus and less need for government, and less spending these economists say Obama is not accounting for, from a reliably robust revenue base that will benefit the rich, but without the all-important deprivation of The People that makes them feel powerful, causes the need for government, and that is nothing but a complete lack of moral intelligence.

A Great Recession is no one's self-interest. Neo-classicism is in means, not ends.

Obama/Biden, 2008.

Stock in Trade

To be arbitrary and capricious. To be unpredictable is the stock in trade of a consolidated capital. It is a hallmark of power: something is, or is not, just because you command it. Economically, that would be a command economy.

So we have a current macro-technical in which the relationship of a giant budget deficit and the interest rate has been improperly reversed into an ad hoc deflation of our economy in which nothing seems to make sense, cause-effect is a matter of an ideological opinion, and the uncertainty causes a high risk factor, and trepidation, of acting contrary to convention. Will raising the interest rate reverse the deflationary trend or deepen it?

Rather than rely on what we don't know, let's rely on what we do!

Consolidated capital distorts markets. The technicals just reflect an arbitrary and capricious market behavior. Things that should have value do not, things that don't do, things that have value are irrationally overvalued...valuations are entirely at the mercy of a consolidated command of capital. It is the antithesis of a free market economics.

Thus, both the problem of our economic woes has been properly identified and the solution properly induced in priority.

All we need to do now is act on it in priority.

Build the coalition for Barack Obama, 2008!

Very best wishes.